Ses2.02 JCM project development process in Indonesia
JCM project development
process in Indonesia
Keni Atika
Indonesia JCM Secretariat
1
Basic concept of the JCM
•
•
•
•
The Joint Crediting Mechanism as a G-to-G scheme which encourages private sector organizations
to invest in Low Carbon Development activities in Indonesia through incentive from the
Government of Japan.
JCM cooperation is not only conducted by Japan and Indonesia, but also with other 16 developing
countries.
Bilateral Cooperation on the Joint Crediting Mechanism for the Low Carbon Growth Partnership
between the Republic of Indonesia and Japan has been signed by the Coordinating Minister for
Economic Affairs of Indonesia and Minister for Foreign Affairs of Japan.
Objectives of the JCM:
1.Facillitate diffusion of leading low carbon technologies, products, systems, services, and
infrastructure as well as implementation of mitigation actions, and contributing to sustainable
development of developing countries.
2. Evaluate contributions to GHG emission reductions/removals from developed countries in a
quantitative manner, through mitigation actions implemented in developing countries and use
those emission reductions or removals to achieve emission reduction targets of the developed
countries.
3. Contribute to the ultimate objective of the UNFCCC by facilitating global actions for emission2
reductions or removals.
JCM Scheme
Japan
Government
Issuance of credit
Notifies
registration
of projects
Report
issuance
of credits
Joint Committee
Japanese
Indonesian
Side communication Side
Request
issuance of
credits
Implementation &
monitoring of
projects
Report
issuance
of credits
Request
issuance of
credits
• Validate projects
Inform results
of validation /
verification
Issuance of credit
Request registration of
projects
Third Party Entities
Submit PDD /
monitoring
report
Indonesia
Government
Secretariat
Request registration of
projects
Project Participants
Notifies
registration
of projects
• Verify amount of
GHG emission
reduction or removal
Submit PDD /
monitoring
report
Inform results
of validation /
verification
Implement project together
May contact TPE and Secretariat through one Contact Entity
Project Participants
Implementation &
monitoring of
projects
3
3
From FS to Project
use PIN (Project Idea Note) to submit application
(recommended)
Exact procedures described
in application guidelines of
respective schemes should
be referred to.
FS Participant Candidates
apply for FS support scheme
METI/NEDO or
MOE Japan
approved
not approved
FS implementation (1 study or more)
No support for
FS(*)
Feasible
Not feasible
Apply for subsidy or
entrustment(**)
Not apply(*)
METI/NEDO or
MOE Japan
approved
JCM Project with subsidy or
entrustment
need further study
No
implementation
as JCM project
(*)except for FS
reapplication
not approved
No subsidy or
Entrustment(*)
(**)PP candidate may
apply without conducting
4
FS
From FS to Project
Since JCM bilateral agreement in 2013, several guidelines, procedure,
rules, registry system and methodologies have been developed
2.
3.
4.
5.
ISO 14065 based
1.
Guideline:
Project Design
Document
Proposed
Methodology
Third Party Entity
Validation and
Verification
Sustainable
Development
Implementation Plan
and Report
Rules: 1. Rules of Implementation
2. Rules of Procedure for JC
Procedure: Project Cycle Procedure
Methodologies:
10 methodologies in energy
conservation sectors have been
developed
Registry system:
We have developed the first climate change
mitigation registry system in Indonesia, and it is
expected to connect with the National Registry
5
Steps in the JCM
Project Participant / Each Government
Joint Committee
Submission of
Proposed
Methodology
Can be conducted by the same TPE
Can be conducted simultaneously
Measurable
Joint Committee
Approval of
Proposed
Methodology
Project Participant
Development
of PDD*
Third Party Entities
Validation
Joint Committee
Registration
Project Participant
Monitoring
Third Party Entities
Verification
Joint Committee decides the amount
Each Government issues the credit
Issuance
of credits
Reportable
Verifiable
6
*PDD: Project Design Document
JCM Project In Practice :
Start of Project
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
Secretariat ay: “Monitor the development of JCM related programs and
implementation of JCM projects, taking into account sustainable development criteria
a d e vi o e tal i teg ity.
(JCM Rule of Implementation Para 14 point (a) article (iii))
Through:
• Meetings
o The Embassy of Japan and Indonesia JCM Secretariat will arrange individual
meeting with project participants from both sides.
o The schedule will be arranged in accordance with Japanese participa t’s
visiting schedule.
• JCM Secretariat involvement (if needed)
o If requested, or when obstacles occur (such as location finding or related to
government systems, the Secretariat should be informed).
7
JCM Project in Practice: Submission
of PDD
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & Validation of PDD
• Project Validation
Project participants: Prepare a draft PDD and submit the draft to a third-party entity
for validation and notify the Joint Committee through the JCM secretariat
(JCM Rule of Implementation Para 19 Point (b))
(note: PDD = Project Design Document)
Inform of public input
Project Participant (PP)
- TPE validate PDD
- TPE receive and check the
completeness of implementation plan
Indonesia JCM
Secretariat
Indonesia Joint
Committe
Submission
of validation
report by PP
8
Submit PDD for public input
JCM Project in Practice:
Technology Implementation
Start of project (i.e
design, procurement,
etc)
Technology
Impementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Site visit after project operation
Monitor the development of JCM related programs and implementation of JCM
projects, taking into account sustainable development criteria and environmental
integrity. (JCM Rule of Implementation Para 14 point (a) article (iii))
o At least one site visit by the Indonesia JCM Secretariat (if possible, also by
the Japanese side).
o The purpose of site visit is to receive feedbacks from the Indonesian side and
to witness and confirm the technology implementation.
o If needed, more site visit may be conducted (as agreed by project
participant(s) and government side)
9
JCM Project in Practice:
Technology Implementation
Start of project (i.e
design, procurement,
etc)
Technology
Impementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Registration
a project is fully acknowledged as a JCM project once it is being registered
Validation
Report
Validated
PDD &
MoC
Positively
Reviewed
SDIP
Joint
Committee
• Project has no potential
negative impacts
• Appropriate action plan is
properly described
voluntary process
10
JCM Project in Practice: Credit issuance
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Sustainable Development Implementation Report (SDIR)
•Submission of SDIR is currently a voluntary process, but it will be part of JCM Rules of
Implementation in the future
• Positive result of SDIR: No negative impacts or appropriate description on the corrective action
Project Participants
submission
Re-submission (within 60 days)
Ex-post evaluation of
the contribution to
Notify the receipt of Secretariat
SD using SDIR form
the request Completeness check [7 days]
Local and/or national
(secretariat)
regulations must be
followed
Joint Committee
Notify the result
Evaluation of SDIR [20 days],
including on-site visit where
necessary
Evaluation of revised SDIR: 10 days
Positive result: to
next step
Negative result: revision of SDIR
11
JCM Project in Practice:
Verification by TPE
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
JCM Rule of Implementation Para 31 to 33
Project participants
Conduct monitoring
Prepare a monitoring report
*PDD Monitoring and Guidelines
*Monitoring Report Sheet
1. Submit
to TPE
TPE
Verify emission reduction
Prepare a verification report
* Validation and Verification
guidelines
* Verification report form
2. Submit report to
project participants
3. Next step: request for credit issuance to Secretariat
Secretariat
The TPE des i es all do u e tatio suppo ti g ve ifi atio a d akes su h do u e tatio
availa le to the Joi t Co
ittee upo e uest. (JCM Guideli es fo Ve ifi atio a d Validatio Pa a
128)
• All of data obtained by TPE which support verification process may be shared to Joint Committee
12
JCM Project in Practice: Credit issuance
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Request issuance of credits
O the asis of a e uest fo otifi atio to ea h side fo issua e of edits su itted y
project participants, the Joint Committee notifies both sides to issue the credits which
were verified by the third-party entities. (JCM Rule of Implementation Para 10)
Project Participants
Request for notification for issuance
Determine allocation
of credits
Notify the receipt of Secretariat
Complete a credit
the request Completeness check
issuance request
[7 days] (secretariat)
form
* Credit issuance request
Joint Committee
form
Notify the result
Decision on
notification of
amount of credits to
be issued
Notify the issuance
Notify the amount of credits
to be issued
Government
Issuance of credits 13
Validation and verification with TPE
• TPE are selected by the project participants to validate and/or
verify their PDD and/or emission reductions.
• Requirements/Eligibility:
– Candidate entities are either:
(a) Accredited under ISO 14065; or
(b) Designated Operational Entities (DOEs) under the UNFCCC
CDM
– Candidate entities have sufficient knowledge of the JCM
between the Republic of Indonesia and Japan by reading and
knowing all applicable rules and guidelines of the JCM.
• Eligible entities can apply as TPE for JCM in each host country
separately
– Candidate entity submit application form and related document stated
in Guideline for TPE to JCM Secretariat of Japan and Indonesia
([email protected] and [email protected] )
14
List of TPE in Indonesia
TPE
Lloyd’s Register Quality
Assurance Limited (LRQA)
Japan Quality Assurance
Organization (JQA)
Japan Management
Association (JMA)
TÜV SÜD South Asia Private
Limited (TÜV SÜD)
Deloitte Tohmatsu Evaluation
and Certification Organization
Co., Ltd.
TÜV Rheinland (China) Ltd.
EPIC Sustainability Services
Private Limited (India)
Accreditation
JCM Sectoral Scope
CDM
(for Validation and Verification) ISO 14065
DOE
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
Yes
Yes
13
1, 3, 4, 5, 9, 10, 13, 14
Yes
Yes
1, 2, 3, 4, 6, 8, 9, 14
Yes
Yes
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15
No
Yes
1, 2, 3, 4, 5, 8, 10, 12, 13, 15
No
Yes
No
Yes
No
Yes
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,
13, 14, 15
KBS Certification Services Pvt.
Ltd. (India)
1, 3, 4 ,5, 6, 7, 9, 10, 11, 13, 15
No
Yes
PT Mutu Agung Lestari
1, 2, 3, 14, 15
Provisionally designated: 4, 13
Yes
No
ERM Certification and
Verification Services Ltd
1, 2, 3, 4, 5, 8, 9, 10, 13, 15
No
Yes
Sectoral Scope
1. Energy Industries
(renewable/non-renewable
sources);
2. Energy Distribution;
3. Energy Demand;
4. Manufacture Industries;
5. Chemical Industries;
6. Construction;
7. Transport;
8. Mining/Mineral Production;
9. Metal Production;
10. Fugitive emissions from fuel
(solid, oil and gas);
11. Fugitive emissions from
production and consumption of
halocarbons and sulfur
hexafluoride;
12. Solvent Use
13. Waste handling and disposal
14. Reducing emissions from
Deforestation and Forest
Degradation in developing
countries; and the role of
conservation, sustainable
management of forest and
forest carbon stocks in
developing countries (REDDplus),
15
15. Agriculture.
Thank you! Terima kasih!
Our website: http://jcm.ekon.go.id
Contact us at [email protected]
Sekretariat JCM Indonesia
Gedung Kementerian Koordinator Bidang Perekonomian Lt.2
Jl. Medan Merdeka Barat 7, Jakarta 10110
16
process in Indonesia
Keni Atika
Indonesia JCM Secretariat
1
Basic concept of the JCM
•
•
•
•
The Joint Crediting Mechanism as a G-to-G scheme which encourages private sector organizations
to invest in Low Carbon Development activities in Indonesia through incentive from the
Government of Japan.
JCM cooperation is not only conducted by Japan and Indonesia, but also with other 16 developing
countries.
Bilateral Cooperation on the Joint Crediting Mechanism for the Low Carbon Growth Partnership
between the Republic of Indonesia and Japan has been signed by the Coordinating Minister for
Economic Affairs of Indonesia and Minister for Foreign Affairs of Japan.
Objectives of the JCM:
1.Facillitate diffusion of leading low carbon technologies, products, systems, services, and
infrastructure as well as implementation of mitigation actions, and contributing to sustainable
development of developing countries.
2. Evaluate contributions to GHG emission reductions/removals from developed countries in a
quantitative manner, through mitigation actions implemented in developing countries and use
those emission reductions or removals to achieve emission reduction targets of the developed
countries.
3. Contribute to the ultimate objective of the UNFCCC by facilitating global actions for emission2
reductions or removals.
JCM Scheme
Japan
Government
Issuance of credit
Notifies
registration
of projects
Report
issuance
of credits
Joint Committee
Japanese
Indonesian
Side communication Side
Request
issuance of
credits
Implementation &
monitoring of
projects
Report
issuance
of credits
Request
issuance of
credits
• Validate projects
Inform results
of validation /
verification
Issuance of credit
Request registration of
projects
Third Party Entities
Submit PDD /
monitoring
report
Indonesia
Government
Secretariat
Request registration of
projects
Project Participants
Notifies
registration
of projects
• Verify amount of
GHG emission
reduction or removal
Submit PDD /
monitoring
report
Inform results
of validation /
verification
Implement project together
May contact TPE and Secretariat through one Contact Entity
Project Participants
Implementation &
monitoring of
projects
3
3
From FS to Project
use PIN (Project Idea Note) to submit application
(recommended)
Exact procedures described
in application guidelines of
respective schemes should
be referred to.
FS Participant Candidates
apply for FS support scheme
METI/NEDO or
MOE Japan
approved
not approved
FS implementation (1 study or more)
No support for
FS(*)
Feasible
Not feasible
Apply for subsidy or
entrustment(**)
Not apply(*)
METI/NEDO or
MOE Japan
approved
JCM Project with subsidy or
entrustment
need further study
No
implementation
as JCM project
(*)except for FS
reapplication
not approved
No subsidy or
Entrustment(*)
(**)PP candidate may
apply without conducting
4
FS
From FS to Project
Since JCM bilateral agreement in 2013, several guidelines, procedure,
rules, registry system and methodologies have been developed
2.
3.
4.
5.
ISO 14065 based
1.
Guideline:
Project Design
Document
Proposed
Methodology
Third Party Entity
Validation and
Verification
Sustainable
Development
Implementation Plan
and Report
Rules: 1. Rules of Implementation
2. Rules of Procedure for JC
Procedure: Project Cycle Procedure
Methodologies:
10 methodologies in energy
conservation sectors have been
developed
Registry system:
We have developed the first climate change
mitigation registry system in Indonesia, and it is
expected to connect with the National Registry
5
Steps in the JCM
Project Participant / Each Government
Joint Committee
Submission of
Proposed
Methodology
Can be conducted by the same TPE
Can be conducted simultaneously
Measurable
Joint Committee
Approval of
Proposed
Methodology
Project Participant
Development
of PDD*
Third Party Entities
Validation
Joint Committee
Registration
Project Participant
Monitoring
Third Party Entities
Verification
Joint Committee decides the amount
Each Government issues the credit
Issuance
of credits
Reportable
Verifiable
6
*PDD: Project Design Document
JCM Project In Practice :
Start of Project
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
Secretariat ay: “Monitor the development of JCM related programs and
implementation of JCM projects, taking into account sustainable development criteria
a d e vi o e tal i teg ity.
(JCM Rule of Implementation Para 14 point (a) article (iii))
Through:
• Meetings
o The Embassy of Japan and Indonesia JCM Secretariat will arrange individual
meeting with project participants from both sides.
o The schedule will be arranged in accordance with Japanese participa t’s
visiting schedule.
• JCM Secretariat involvement (if needed)
o If requested, or when obstacles occur (such as location finding or related to
government systems, the Secretariat should be informed).
7
JCM Project in Practice: Submission
of PDD
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & Validation of PDD
• Project Validation
Project participants: Prepare a draft PDD and submit the draft to a third-party entity
for validation and notify the Joint Committee through the JCM secretariat
(JCM Rule of Implementation Para 19 Point (b))
(note: PDD = Project Design Document)
Inform of public input
Project Participant (PP)
- TPE validate PDD
- TPE receive and check the
completeness of implementation plan
Indonesia JCM
Secretariat
Indonesia Joint
Committe
Submission
of validation
report by PP
8
Submit PDD for public input
JCM Project in Practice:
Technology Implementation
Start of project (i.e
design, procurement,
etc)
Technology
Impementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Site visit after project operation
Monitor the development of JCM related programs and implementation of JCM
projects, taking into account sustainable development criteria and environmental
integrity. (JCM Rule of Implementation Para 14 point (a) article (iii))
o At least one site visit by the Indonesia JCM Secretariat (if possible, also by
the Japanese side).
o The purpose of site visit is to receive feedbacks from the Indonesian side and
to witness and confirm the technology implementation.
o If needed, more site visit may be conducted (as agreed by project
participant(s) and government side)
9
JCM Project in Practice:
Technology Implementation
Start of project (i.e
design, procurement,
etc)
Technology
Impementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Registration
a project is fully acknowledged as a JCM project once it is being registered
Validation
Report
Validated
PDD &
MoC
Positively
Reviewed
SDIP
Joint
Committee
• Project has no potential
negative impacts
• Appropriate action plan is
properly described
voluntary process
10
JCM Project in Practice: Credit issuance
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Sustainable Development Implementation Report (SDIR)
•Submission of SDIR is currently a voluntary process, but it will be part of JCM Rules of
Implementation in the future
• Positive result of SDIR: No negative impacts or appropriate description on the corrective action
Project Participants
submission
Re-submission (within 60 days)
Ex-post evaluation of
the contribution to
Notify the receipt of Secretariat
SD using SDIR form
the request Completeness check [7 days]
Local and/or national
(secretariat)
regulations must be
followed
Joint Committee
Notify the result
Evaluation of SDIR [20 days],
including on-site visit where
necessary
Evaluation of revised SDIR: 10 days
Positive result: to
next step
Negative result: revision of SDIR
11
JCM Project in Practice:
Verification by TPE
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
JCM Rule of Implementation Para 31 to 33
Project participants
Conduct monitoring
Prepare a monitoring report
*PDD Monitoring and Guidelines
*Monitoring Report Sheet
1. Submit
to TPE
TPE
Verify emission reduction
Prepare a verification report
* Validation and Verification
guidelines
* Verification report form
2. Submit report to
project participants
3. Next step: request for credit issuance to Secretariat
Secretariat
The TPE des i es all do u e tatio suppo ti g ve ifi atio a d akes su h do u e tatio
availa le to the Joi t Co
ittee upo e uest. (JCM Guideli es fo Ve ifi atio a d Validatio Pa a
128)
• All of data obtained by TPE which support verification process may be shared to Joint Committee
12
JCM Project in Practice: Credit issuance
Start of project (i.e
design, procurement,
etc)
Technology
Implementation &
Registration
Verification by
TPE
Credit
issuance
Submission & validation of PDD
• Request issuance of credits
O the asis of a e uest fo otifi atio to ea h side fo issua e of edits su itted y
project participants, the Joint Committee notifies both sides to issue the credits which
were verified by the third-party entities. (JCM Rule of Implementation Para 10)
Project Participants
Request for notification for issuance
Determine allocation
of credits
Notify the receipt of Secretariat
Complete a credit
the request Completeness check
issuance request
[7 days] (secretariat)
form
* Credit issuance request
Joint Committee
form
Notify the result
Decision on
notification of
amount of credits to
be issued
Notify the issuance
Notify the amount of credits
to be issued
Government
Issuance of credits 13
Validation and verification with TPE
• TPE are selected by the project participants to validate and/or
verify their PDD and/or emission reductions.
• Requirements/Eligibility:
– Candidate entities are either:
(a) Accredited under ISO 14065; or
(b) Designated Operational Entities (DOEs) under the UNFCCC
CDM
– Candidate entities have sufficient knowledge of the JCM
between the Republic of Indonesia and Japan by reading and
knowing all applicable rules and guidelines of the JCM.
• Eligible entities can apply as TPE for JCM in each host country
separately
– Candidate entity submit application form and related document stated
in Guideline for TPE to JCM Secretariat of Japan and Indonesia
([email protected] and [email protected] )
14
List of TPE in Indonesia
TPE
Lloyd’s Register Quality
Assurance Limited (LRQA)
Japan Quality Assurance
Organization (JQA)
Japan Management
Association (JMA)
TÜV SÜD South Asia Private
Limited (TÜV SÜD)
Deloitte Tohmatsu Evaluation
and Certification Organization
Co., Ltd.
TÜV Rheinland (China) Ltd.
EPIC Sustainability Services
Private Limited (India)
Accreditation
JCM Sectoral Scope
CDM
(for Validation and Verification) ISO 14065
DOE
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
Yes
Yes
13
1, 3, 4, 5, 9, 10, 13, 14
Yes
Yes
1, 2, 3, 4, 6, 8, 9, 14
Yes
Yes
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15
No
Yes
1, 2, 3, 4, 5, 8, 10, 12, 13, 15
No
Yes
No
Yes
No
Yes
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,
13, 14, 15
KBS Certification Services Pvt.
Ltd. (India)
1, 3, 4 ,5, 6, 7, 9, 10, 11, 13, 15
No
Yes
PT Mutu Agung Lestari
1, 2, 3, 14, 15
Provisionally designated: 4, 13
Yes
No
ERM Certification and
Verification Services Ltd
1, 2, 3, 4, 5, 8, 9, 10, 13, 15
No
Yes
Sectoral Scope
1. Energy Industries
(renewable/non-renewable
sources);
2. Energy Distribution;
3. Energy Demand;
4. Manufacture Industries;
5. Chemical Industries;
6. Construction;
7. Transport;
8. Mining/Mineral Production;
9. Metal Production;
10. Fugitive emissions from fuel
(solid, oil and gas);
11. Fugitive emissions from
production and consumption of
halocarbons and sulfur
hexafluoride;
12. Solvent Use
13. Waste handling and disposal
14. Reducing emissions from
Deforestation and Forest
Degradation in developing
countries; and the role of
conservation, sustainable
management of forest and
forest carbon stocks in
developing countries (REDDplus),
15
15. Agriculture.
Thank you! Terima kasih!
Our website: http://jcm.ekon.go.id
Contact us at [email protected]
Sekretariat JCM Indonesia
Gedung Kementerian Koordinator Bidang Perekonomian Lt.2
Jl. Medan Merdeka Barat 7, Jakarta 10110
16